Frankfort, Ky. —
Frankfort policymakers are just as frustrated and mystified by the debt limit impasse in Washington as the rest of the country. And while the state’s own finances have shown a generally positive improvement lately, Republican lawmakers raised a new concern Thursday — a possible jump in employers’ federal payments for unemployment if the state is unable to make a $28 million interest payment on unemployment loans this September.
Frankfort politicians know a national default will have a significant impact on state government, Kentucky’s economy and its people —but they don’t know how much or how it will occur.
“It’s very difficult to plan right now,” said Gov. Steve Beshear Thursday. “Because no one knows for sure what the federal government will do — what bills they will pay, what programs they will not fund.”
Beshear said the biggest feeral contributions to Kentucky’s budget are for Medicaid, transportation and education and if federal lawmakers can resolve the issue quickly, he doesn’t think the impact will be
For more on this story, see Friday's edition of the Commonwealth Journal.
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